Online used car dealer Cazoo recorded a loss of £ 102million for the first half of 2021, increasing a loss of £ 31million over the same period last year.
In the numbers just released, Cazoo also revealed his performance during last year’s lockdown, comparing this year’s performance to last.
This is the first time that Cazoo has revealed his performance during the Covid-19 crisis.
Cazoo only sold 4,084 cars in the first half of 2020 as the country turned to mass online car buying.
As the lockdown hit dealerships and customers flocked to dealership websites to purchase vehicles, the used car group only managed to sell 3,234 cars online.
850 others were sold commercially during the same period.
Cazoo recorded a loss of £ 355 on every car sold to a retail customer.
In the first half of 2020, Cazoo generated just £ 40million in revenue, of which £ 37million came from the sale of used cars to retail customers.
The used car dealer’s fortunes improved in 2021 as it managed to increase sales by 401% compared to the same period last year.
In the first six months of this year, it sold a total of 20,454 cars, including 16,557 for individuals and 3,897 for commerce.
Revenue jumped to £ 248million and he managed to squeeze £ 315 in profit from every retail car sold.
But it still recorded losses of £ 31million in 2020 to £ 102million this year.
Boss Alex Chesterman said: “We achieved record results in the first half of the year with continued strong growth in sales and gross margin per unit.
“Consumers continue to enjoy the selection, transparency and convenience of fully online car purchasing, generating record sales of £ 248million in the half-year, up 521% on a year.
“Our gross margin per unit increased significantly in the first half of the year, up £ 670 year-on-year, driven by continued operational improvements.
“We expect operational efficiency to continue to drive further improvement in gross margin and we remain on track to reach close to $ 1 billion in revenue in 2021.”
Chesterman went on to explain that the acquisition of SFS and SMH, the reconditioning companies, will help Cazoo overcome its biggest hurdle – getting cars ready for sale fairly quickly.
He said: “The biggest constraint we face is being able to recondition vehicles in the volumes necessary to meet consumer demand and this latest strategic acquisition will mitigate the risks to our future growth by doubling our capacity and improving significantly our vehicle preparation and logistics staff, giving us the ability to meet our growth aspirations over the next two years. ‘
Cazoo’s share price fell to $ 8.52 today. Read it latest Cazoo stories here.